Bitcoin Investment Thesis Still Intact Despite ETF Exit, Analysis Says.
Analysis suggests the current Bitcoin ETF sell-off is a 'purification' phase before longer-term institutional capital takes over.Summary
Eric Jackson, founder of EMJ Capital, argues that despite recent net outflows from US spot Bitcoin ETFs, the core investment thesis for Bitcoin remains intact. He contends that Bitcoin has temporarily become a "high-beta tech position," moving in lockstep with tech ETFs like BlackRock's IGV because the ETFs changed who owns BTC, shifting marginal buying power from retail to institutions.
Jackson views the current selling by ETF allocators as a necessary 'purification' cycle, similar to past market bottoms where 'weak hands' are filtered out. He predicts that this exit will be replaced by a new wave of longer-duration institutional capital, including sovereign wealth funds, corporate treasuries, and pension funds, which will hold BTC for decades rather than just cycles.
For the bearish trend to reverse, Jackson notes that stablecoin supply needs to recover. However, he remains optimistic that once the pressure from tech ETF selling subsides and stablecoin supply expands, Bitcoin's long-term strength will reassert itself.
(Source：Cointelegraph)